Fitch Affs Miami-Dade County, FL's Water/Sewer Revs 'A+'; Maintains Neg Outlook.Business Editors NEW YORK--(BUSINESS WIRE)--March 11, 2004 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms the 'A+' rating on Miami Dade County Dade County can refer to the following places:
sewage system, sewage works facility, installation - a building or place that provides a particular service or is used for a particular industry; "the bonds, series 1994, 1995, 1997, 1999A and 2003. The Rating Outlook remains Negative. An upcoming swaption Swaption Options on interest rate swaps. The buyer of a swaption has the right to enter into an interest rate swap agreement by some specified date in the future. The swaption agreement will specify whether the buyer of the swaption will be a fixed-rate receiver or a fixed-rate transaction to be executed by Miami-Dade County, FL (the county) on the water and sewer system revenue bonds, series 1995 provides a near term cash benefit to the water and sewer system. The upfront payment will be used to increase the size of a rate stabilization fund Stabilization fund may refer to:
The maturity of the swap, if exercised by the counterparty in 2005, will match the maturity of the 1995 bonds. The county will pay the counterparty a fixed rate of 5.27% and the counterparty will pay the county BMA BMA British Medical Association. on a notional amount The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change hands and is thus referred to as notional. of $295 million. In consideration for this option, the counterparty is paying the county a cash benefit equal to about $30 million. If a termination event occurs, the water and sewer system might have to make a sizable termination payment. The county has previously entered into swap agreements on the two series of outstanding bonds. The 'A+' rating reflects the broad and diverse service area, sound historical financial operations, adequate water supply and treatment capacity, and moderate rates. Debt service coverage has declined in recent years, but is still adequate at 1.4x, according to unaudited fiscal 2003 results. Forecast coverage levels are at least 1.7x beginning in fiscal 2004, assuming rate increases not yet approved. The county implemented a 6% rate increase for fiscal 2004, the first increase in over five years. Maintenance of the 'A+' rating will depend on management's ability to maintain satisfactory financial flexibility consistent with historical performance through the use of recurring revenues. In addition, needed capital projects must continue to be funded. |
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